This document provides an overview of the development of management theories and approaches throughout history. It discusses early examples of management from ancient Egypt and China. It then covers the classical approaches including scientific management from Taylor and general administrative theory from Fayol. It also describes the quantitative approach using analytics and simulations. Behavioral approaches are reviewed including the Hawthorne Studies and systems theory. Finally, it introduces contingency theory which recognizes there is no universal set of management rules and the approach depends on situational factors.

2. MH-2
• Describe some early management examples
• Explain the various theories in the classical approach
• Discuss the development and uses of the behavioral
approach
• Describe the quantitative approach
• Explain the various theories in the contemporary
approach
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3. MH-3
Historical Background of
Management
• Ancient Management
– Egypt (pyramids) and China (Great Wall)
– Venetians (floating warship assembly lines)
• Adam Smith The Wealth of Nations in 1776
• Industrial Revolution
– Substituted machine power for human labor
– Created large organizations in need of
management
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4. MH-4
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Exhibit MH-1: Major Approaches
to Management

5. MH-5
Scientific Management
• Fredrick Winslow Taylor
– The “father” of scientific management
• The theory of scientific management
– Using scientific methods to define the “one best
way” for a job to be done:
• Putting the right person on the job with the correct
tools and equipment
• Having a standardized method of doing the job
• Providing an economic incentive to the worker
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6. MH-6
Exhibit MH-2
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7. MH-7
General Administrative Theory
• Henri Fayol
– Believed that the practice of management was
distinct from other organizational functions
– Developed principles of management that applied
to all organizational situations
• Max Weber
– Developed a theory of authority based on an ideal
type of organization (bureaucracy)
• Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism
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8. MH-8
Exhibit MH-3
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9. MH-9
Exhibit MH-4
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10. MH-10
Quantitative Approach
• Quantitative Approach
– Also called operations research or management
science
– Evolved from mathematical and statistical
methods developed to solve WWII military
logistics and quality control problems
– Focuses on improving managerial decision making
by applying:
• Statistics, optimization models, information models,
and computer simulations
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11. MH-11
Organizational Behavior
• Organizational Behavior (OB)
– The study of the actions of people at work; people
are the most important asset of an organization
• Early OB Advocates
– Robert Owen
– Hugo Munsterberg
– Mary Parker Follett
– Chester Barnard
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12. MH-12
Exhibit MH-5
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13. MH-13
The Hawthorne Studies
• A series of productivity experiments
conducted at Western Electric from 1924 to
1932
– Experimental findings
• Productivity unexpectedly increased under imposed
adverse working conditions.
• The effect of incentive plans was less than expected.
– Research conclusion
• Social norms, group standards and attitudes more
strongly influence individual output and work behavior
than do monetary incentives.
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14. MH-14
Exhibit MH-6
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15. MH-15
The Systems Approach
• System - a set of interrelated and
interdependent parts arranged in a manner
that produces a unified whole.
• Closed systems
• Are not influenced by and do not interact with their
environment (all system input and output is internal)
• Open systems
• Dynamically interact to their environments by taking in
inputs and transforming them into outputs that are
distributed into their environments
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16. MH-16
Exhibit MH-7
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17. MH-17
The Contingency Approach
• Contingency Approach - sometimes called the
situational approach
– There is no one universally applicable set of
management principles (rules) by which to
manage organizations.
– Organizations are individually different, face
different situations (contingency variables), and
require different ways of managing.
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18. MH-18
Exhibit MH-8
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19. MH-19
Terms to Know
• division of labor (or job
specialization)
• Industrial Revolution
• scientific management
• therbligs
• general administrative
theory
• principles of management
• bureaucracy
• quantitative approach
• organizational behavior
(OB)
• Hawthorne Studies
• system
• closed systems
• open systems
• contingency approach
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20. MH-20
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